1Q14 performance summary
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The Board of Directors of DBS Group Holdings Ltd (“DBSH”) reports the following:
Unaudited Financial Results for the First Quarter Ended 31 March 2014
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the first quarter of 2014, no dividend has been declared for DBSH non-voting redeemable
convertible preference shares and DBSH ordinary shares.
By order of the Board
Goh Peng Fong
Group Secretary
29 April 2014
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Quarter ended
31 March 2014
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Customer Deposits
Debts Issued
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Interested Person Transactions
Selected Notes to the Interim Financial Statements
Confirmation by the Board
Page
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5
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1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), as modified by the requirements of Notice to Banks No. 612 “Credit Files,
Grading and Provisioning” issued by the Monetary Authority of Singapore. The accounting policies and methods of
computation applied for the current financial periods are consistent with those applied for the financial year ended 31
December 2013, with the exception of the adoption of new or revised FRS.
On 1 January 2014, the Group adopted the following new or revised FRS that are issued by the Accounting Standards Council
and relevant for the Group:
FRS 110 Consolidated Financial Statements
FRS 111 Joint Arrangements
FRS 112 Disclosure of Interests in Other Entities
Amendments to FRS 32 Offsetting Financial Assets and Financial Liabilities
There is no significant impact on the Group’s financial statements from the adoption of the above FRS or revised FRS.
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
1,488
510
453
2,451
1,041
1,410
151
1,327
507
483
2,317
952
1,365
223
12
1
(6)
6
9
3
(32)
1,454
439
258
2,151
1,030
1,121
151
2
16
76
14
1
26
-
Profit before tax
Net profit
1,272
1,033
1,169
950
9
9
983
802
29
29
223
-
-
NM
-
221
(50)
1
NM
(25)
1,231
950
NM
30
973
NM
27
Selected balance sheet items ($m)
Customer loans
Total assets
253,229
418,979
223,670
373,259
13
12
248,654
402,008
2
4
Customer deposits
Total liabilities
Shareholders’ funds
301,490
380,832
35,567
262,645
336,210
32,734
15
13
9
292,365
364,322
34,233
3
5
4
1.66
39.3
42.5
1.02
12.3
84.0
1.0
15
13.1
13.1
15.3
1.64
42.7
41.1
1.06
12.0
85.2
1.2
21
12.9
12.9
15.5
Selected income statement items ($m)
One-time item (Gain from sale of BPI)
One-time item (DBS Foundation)
One-time item (National Gallery Singapore)
Net profit including one-time items
Key financial ratios (%) (excluding one-time
1/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
2/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
Common Equity Tier 1 capital adequacy ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
1.61
32.4
47.9
0.79
9.7
85.0
1.1
13
13.7
13.7
16.3
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Per share data ($)
Per basic share
– earnings excluding one-time items
– earnings
3/
– net book value
Per diluted share
– earnings excluding one-time items
– earnings
3/
– net book value
1st Qtr
2014
1st Qtr
2013
4th Qtr
2013
1.69
1.78
14.14
1.58
1.58
13.35
1.30
1.37
13.61
1.68
1.76
14.04
1.56
1.56
13.25
1.28
1.35
13.51
Notes:
1/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis.
2/ Calculated based on net profit attributable to the shareholders net of dividends on preference shares and other equity instruments. Non-controlling interests, preference shares and
other equity instruments are not included as equity in the computation of return of equity.
3/ Non-controlling interests are not included as equity in the computation of net book value per share.
NM Not Meaningful
First-quarter net profit rose 9% from a year ago to a record
$1.03 billion, marking the first time that quarterly earnings
crossed $1 billion. Total income increased 6% to a new
high of $2.45 billion as higher net interest margin, loan
volumes and customer non-interest income more than
offset a decline in market income. Compared to the
previous quarter, net profit was 29% higher as total
income increased 14%.
Asset quality further strengthened as the nonperforming loan rate improved to 1.0% from 1.1% in the
previous quarter due to the resolution of a significant
exposure. Specific allowances for loans of 15 basis
points were similar to the previous quarter but lower
than a year ago. Allowance coverage rose to 148% and
to 271% if collateral was considered, both of which were
historical highs.
Net interest income rose 12% from a year ago and 2%
from the previous quarter to a new high of $1.49 billion.
Loans grew 13% from a year ago and 2% from the
previous quarter. Net interest margin increased five basis
points from the previous quarter to 1.66% as trade loan
pricing and other asset yields improved.
Liquidity was ample as deposits rose 15% from a year
ago and 3% from the previous quarter to $301 billion.
The loan-deposit ratio of 84% was similar to recent
quarters. Capital ratios continued to exceed regulatory
standards, with the Common Equity Tier 1 ratio at
13.1%.
Non-interest income fell 3% from a year ago to $963
million due to lower stockbroking commissions, investment
banking fees and trading gains. These declines were
partially offset by continued growth in customer-related
income. Fee income from trade and transactions services
and from wealth management, as well as treasury
customer income, reached new highs. Non-interest
income was 38% higher than the previous quarter as fee
and trading income increased.
Return on equity was 12.3% compared to 12.0% a year
ago.
If one-time items – comprising a gain of $223 million
from the divestment of a remaining stake in the Bank of
the Philippine Islands (“BPI”) less a $25 million donation
to the National Gallery Singapore – were included, net
profit would be $1.23 billion.
Expenses rose 9% from a year ago and 1% from the
previous quarter to $1.04 billion. Profit before
allowances rose 3% from a year ago and 26% from the
previous quarter to a new high of $1.41 billion.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2014
Average balance
sheet
Average
balance
($m)
1st Qtr 2013
Average
Interest
rate
($m)
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
4th Qtr 2013
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer non-trade
loans
1/
Trade assets
2/
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
202,238
1,244
2.49
177,447
1,129
2.58
195,362
1,229
2.50
62,669
36,358
63,451
364,716
404
144
337
2,129
2.61
1.61
2.15
2.37
54,074
32,116
64,929
328,566
338
110
343
1,920
2.54
1.39
2.14
2.37
62,941
37,605
63,061
358,969
403
119
334
2,085
2.54
1.26
2.10
2.30
291,197
48,666
339,863
517
124
641
0.72
1.03
0.76
261,862
42,644
304,506
466
127
593
0.72
1.21
0.79
285,155
51,133
336,288
507
124
631
0.71
0.96
0.75
1,488
1.66
1,327
1.64
1,454
1.61
Net interest
3/
income/margin
Notes:
1/ Trade assets were subsumed under “Customer loans” and “Interbank assets” for previous presentation. Prior period comparatives have been aligned to the current
presentation.
2/ Includes non-restricted balances with central banks.
3/ Net interest margin is net interest income expressed as a percentage of average interest-bearing assets.
Net interest income grew 2% from the previous quarter to
$1.49 billion. Net interest margin increased five basis points
to 1.66% as trade loan pricing as well as other asset yields
improved. The higher asset yields were partially offset by
higher funding costs.
Compared to a year ago, net interest income rose 12%. Net
interest margin was two basis points higher as funding
costs fell moderately. Asset volumes were also higher, led
by increases in customer loans and trade assets.
1st Qtr 2014 versus 1st Qtr 2013
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2014 versus 4th Qtr 2013
Volume
Rate
Net
change
Volume
Rate
Net
change
158
(43)
115
43
(1)
42
54
14
(8)
12
20
2
66
34
(6)
(2)
(4)
2
12
32
8
10
28
10
218
(9)
209
39
51
90
53
18
71
(2)
(21)
(23)
51
(3)
48
11
(6)
5
10
9
19
21
3
24
147
14
161
34
32
66
Interest income
Customer non-trade
loans
Trade assets
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on net interest income
Due to change in number of days
Net Interest Income
-
(32)
161
34
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Stockbroking
Investment banking
1/
Trade and transaction services
Loan-related
2/
Cards
Wealth management
Others
Fee and commission income
Less: Fee and commission expense
43
43
140
118
83
117
23
62
64
134
103
78
113
14
(31)
(33)
4
15
6
4
64
(7)
12
64
(12)
22
10
567
57
568
61
(7)
46
43
125
72
94
96
21
497
58
Net fee and commission income
510
507
1
439
16
14
(2)
Notes:
1/ Includes trade & remittances, guarantees and deposit-related fees.
2/ Net of interchange fees paid.
Compared to a year ago, net fee and commission income
was 1% higher as continued growth in annuity businesses
more than offset declines in market-related activities.
Stockbroking commissions fell in line with lower market
turnover while investment banking fell from a high base
arising from a significant transaction a year ago.
Net fee and commission income rose 16% from the
previous quarter to a new high of $510 million. The growth
was broad-based. Contributions from wealth management
and trade and transaction services rose to new highs, while
those from loan activities were also higher.
OTHER NON-INTEREST INCOME
($m)
Net trading income
Net income from investment securities
Net gain on fixed assets
1/
Others (includes rental income)
Total
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
362
408
(11)
163
>100
38
43
10
66
9
(42)
NM
11
82
13
(54)
NM
(23)
453
483
(6)
258
76
Notes:
1/ Excludes one-time items.
NM Not Meaningful
Net trading income of $362 million was underpinned by
treasury customer income, which rose to a record.
Trading gains were higher than the previous quarter but
lower than a year ago, when fixed-income market
conditions were more favourable.
Net income from investment securities of $38 million
was lower than both comparative periods, with the
decline offset by a net gain on fixed asset sales of $43
million.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
557
98
187
59
140
1,041
19,623
506
88
167
50
141
952
18,523
10
11
12
18
(1)
9
6
527
91
184
67
161
1,030
19,393
6
8
2
(12)
(13)
1
1
53
1
55
1
(4)
-
54
-
(2)
NM
2
2
-
2
-
Included in the above table were:
Depreciation of properties and other fixed assets
Directors’ fees
Audit fees payable
Expenses rose 1% from the previous quarter to $1.04
billion as higher staff and occupancy costs were offset by
a decline in other expenses.
Compared to a year ago, costs rose 9%, at a slightly
higher rate than income growth. The cost-income ratio
was 42% compared with 41% a year ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
56
110
(49)
60
(7)
93
15
10
3
97
(32)
114
7
8
2
33
64
(18)
>100
25
50
>100
NM
81
11
16
9
46
(1)
15
36
(38)
(67)
>100
(>100)
2
(1)
NM
10
(80)
151
223
(32)
151
-
General allowances (GP)
Specific allowances (SP) for loans
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
1/
Specific allowances (SP) for securities, properties and
other assets
Total
Notes:
1/
Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
Total allowances were unchanged from the previous
quarter at $151 million. An increase in specific
allowances for loans in South and South-east Asia was
offset by write-backs in Rest of the World and lower
non-loan specific allowances.
Compared to a year ago, total allowances were 32%
lower. Specific allowances for loans fell 18% to $93
million while general allowances were also lower in
line with loan growth.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer
Banking /
Wealth
Management
Selected income items
1/
1st Qtr 2014
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Institutional
Banking
Treasury
Total
Others
384
282
666
437
29
766
520
1,286
357
129
218
61
279
122
-
120
100
220
125
(7)
1,488
963
2,451
1,041
151
2
202
800
157
11
113
13
1,272
396
261
657
481
25
805
341
1,146
367
105
182
18
200
128
1
71
77
148
54
20
1,454
697
2,151
1,030
151
151
674
71
13
87
13
983
359
263
622
400
18
718
484
1,202
319
173
163
160
323
110
-
87
83
170
123
32
1,327
990
2,317
952
223
204
710
213
27
42
27
1,169
76,332
208,713
92,285
36,847
144,721
15
8
159,323
5
3
58,510
3
2
18,278
20
40
414,177
4,802
418,979
380,832
43
53
1/
4th Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
1st Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Selected balance sheet and other
2/
items
31 Mar 2014
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2014
Depreciation for 1st Qtr 2014
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer
Banking/
Wealth
Management
31 Dec 2013
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2013
Depreciation for 4th Qtr 2013
31 Mar 2013
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2013
Depreciation for 1st Qtr 2013
Institutional
Banking
Treasury
Total
Others
72,887
207,264
83,049
34,006
143,325
25
8
147,171
11
3
60,384
5
2
13,442
31
41
65,336
189,044
78,063
36,014
137,398
8
9
123,619
2
2
66,695
3
2
8,498
18
42
397,206
4,802
402,008
364,322
72
54
368,457
4,802
373,259
336,210
31
55
Notes:
1/ Non-interest income and profit before tax exclude one-time items.
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments.
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation.
The various business segments are described below:
Consumer Banking/ Wealth Management
Consumer Banking/ Wealth Management provides
individual customers with a diverse range of banking and
related financial services. The products and services
available to customers include current and savings
accounts, fixed deposits, loans and home finance, cards,
payments, investment and insurance products.
Total income increased by 1% from the previous quarter
to $666 million. Non-interest income was higher due to
increased contributions from investment and insurance
product sales, but it was offset by a decline in net interest
income due partially to a lower number of days compared
to the previous quarter. Expenses decreased 9% to $437
million from lower computerisation and other non-staff
costs, while allowances increased $4 million to $29
million, in line with loan growth. Profit before tax was 34%
higher at $202 million.
Compared to a year ago, profit before tax was marginally
lower by 1%. Total income increased 7% as net interest
income rose, and non-interest income was higher from
continued customer acquisition, better cross-selling and
higher cards fees. Expenses rose 9% from increased
investments in headcount, systems and branches, and
seasonal marketing campaigns. Total allowances were $11
milion higher as general and specific allowances increased.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including bank and nonbank financial institutions, government- linked companies,
large corporates and small and medium-sized businesses.
The business focuses on broadening and deepening
customer relationships. Products and services comprise
the full range of credit facilities from short term working
capital financing to specialized lending. It also provides
global transactional services such as cash management,
trade finance and securities and fiduciary services;
treasury and markets products; corporate finance and
advisory banking as well as capital markets solutions.
Profit before tax rose 19% from the previous quarter to
$800 million as higher total income and lower expenses
were partially offset by higher allowances.
Total income rose 12% to $1.29 billion. Non-interest
income increased 52% to $520 million, led by higher
treasury customer income due partly to seasonally higher
flows. Loan-related fees were also higher, helped by
increased syndication activity. Net interest income
declined 5% to $766 million partially due to a lower
number of days in the quarter. A significant loan
repayment moderated loan growth to 1% from the
previous quarter. These factors were partially offset by
higher trade loan margin due to better pricing.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Expenses fell 3% to $357 million. Allowances rose
23% to $129 million as both general and specific
allowances were higher.
Compared to a year ago, profit before tax was 13%
higher. Net interest income increased 7% from higher
loan volumes while non-interest income rose 7% from
higher treasury customer income and loan-related
fees.
Expenses were 12% higher in line with higher
business volumes. Total allowances fell 25% from
lower general and specific allowances.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions
and other market participants. It is primary involved in
sales, structuring, market marking and trading across
a broad range of financial products including foreign
exchange, interest rate, debt, credit, equity and other
structured derivatives. Income from these financial
products and services offered to the customer of other
business segments, such as Consumer
Banking/Wealth Management and Institutional
Banking, is reflected in the respective segments.
Treasury is also responsible for managing surplus
funds.
Total income rose 40% from the previous quarter to $279
million as trading gains in foreign exchange and interest
rate activities were higher. Expenses declined by 5% to
$122 million as business-related costs declined. Profit
before tax more than doubled to $157 million.
Compared to a year ago, profit before tax fell 26%. Total
income declined 14% to $279 million as trading gains from
interest rate products were lower. Expenses rose 11% to
$122 million.
Income from treasury customer flows is reflected in the
Institutional Banking and Consumer Banking/Wealth
Management customer segments and not in Treasury.
Income from treasury customer flows rose 54% to $355
million from the previous quarter as customer related
transactions increased in Hong Kong, Singapore, China,
Taiwan and Korea. Compared to a year ago, income from
treasury customer flows was 20% higher.
Others
Others encompasses a range of activities from corporate
decisions and includes income and expenses not attributed
to other business segments, including capital and balance
sheet management, funding and liquidity. DBS Vickers
Securities and Islamic Bank of Asia are also included in this
segment.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Selected income items
2/
1st Qtr 2014
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
931
540
1,471
629
69
260
246
506
178
4
154
123
277
140
11
96
41
137
73
62
47
13
60
21
5
1,488
963
2,451
1,041
151
5
778
117
621
2
326
54
272
1
127
30
97
5
7
(5)
12
34
3
31
13
1,272
199
1,033
908
414
1,322
604
76
272
164
436
184
(1)
132
62
194
152
24
91
38
129
69
54
51
19
70
21
(2)
1,454
697
2,151
1,030
151
2
644
91
506
253
37
216
1
19
1
18
10
16
(6)
22
51
11
40
13
983
134
802
835
614
1,449
579
98
231
243
474
168
41
101
69
170
118
6
109
44
153
69
11
51
20
71
18
67
1,327
990
2,317
952
223
4
776
83
641
265
43
222
1
47
10
37
22
95
26
69
(14)
5
(19)
27
1,169
167
950
274,075
4,802
278,877
1,976
168,817
66,531
66,531
411
50,595
42,006
42,006
99
20,188
18,436
18,436
35
9,761
13,129
13,129
2
7,383
414,177
4,802
418,979
2,523
256,744
2/
4th Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
1st Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
Selected balance sheet items
31 Mar 2014
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
And
Southeast Asia
Rest of
the World
Total
31 Dec 2013
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
258,580
4,802
263,382
2,124
164,117
65,783
65,783
355
51,116
43,132
43,132
103
19,866
16,466
16,466
31
9,581
13,245
13,245
2
7,501
397,206
4,802
402,008
2,615
252,181
31 Mar 2013
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
239,379
4,802
244,181
2,208
147,084
59,863
59,863
354
44,322
38,660
38,660
108
19,050
17,523
17,523
20
9,158
13,032
13,032
2
7,415
368,457
4,802
373,259
2,692
227,029
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked.
2/ Non-interest income and profit exclude one-time items.
3/ Includes interests in associates and joint venture, properties and other fixed assets.
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit rose 23% from the previous quarter to $621
million. Total income rose 11% to $1.47 billion. Net
interest income increased 3% to $931 million as net
interest margin and loan volumes were higher. Noninterest income rose 30% to $540 million from higher fee
income and treasury customer income. Expenses were
4% higher at $629 million, while profit before allowances
rose 17% to $842 million. Allowances fell 9% to $69
million as general allowances were lower.
Compared to a year ago, profit before tax was little
changed as an increase in total income and lower general
and specific allowances were offset by higher expenses.
Net profit was 3% lower at $621 million.
Hong Kong
Currency effects were minimal compared to the previous
quarter and a year ago.
Net profit rose 26% from the previous quarter to $272
million as total income rose 16% to $506 million. Net
interest income was 4% lower at $260 million as lower loan
and deposit volumes were offset by higher net interest
margin. In constant currency terms, loans declined 1% as
trade finance loans were lower while deposits fell 4%. Net
interest margin rose five basis point to 1.57% due to better
loan pricing and higher yields on other assets. Non-interest
income was 50% higher at $246 million from record
treasury customer income as well as higher loan fees.
Expenses fell 3% to $178 million. Allowances remained low
at $4 million, compared to a net write-back of $1 million in
the previous quarter.
Compared to a year ago, net profit was 23% higher at $272
million as total income increased 7%. Net interest income
increased 13% as loans grew 12% on a constant exchange
basis and net interest margin rose four basis points. Noninterest income was little changed as higher income from
treasury customer flows and from trade and transaction
services were offset by lower trading gains. Expenses were
6% higher. Allowances declined to $4 million from $41
million due mainly to lower general allowances.
Other regions
Net profit for Rest of Greater China rose to $97 million from
$18 million in the previous quarter. Total income increased
43% to $277 million. Net interest income was 17% higher at
$154 million from better net interest margin and higher loan
volumes, while non-interest income doubled to $123 million
from higher fee income and treasury customer income.
Expenses fell 8% to $140 million. Total allowances were
halved to $11 million as general and specific allowances
were lower. Tax rose to $30 million from $1 million in the
previous quarter.
Compared to a year ago, net profit rose to $97 million from
$37 million. Higher net interest and non-interest income
were partially offset by higher expenses, while allowances
remained low at $11 million from $6 million a year ago.
Net profit for South and South-east Asia fell 45% from the
previous quarter to $12 million. Total income rose 6% to
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
$137 million, while expenses also increased 6% to $73
million. Total allowances increased 15% to $62 million as a
result of higher specific allowances. Associate contributions
halved to $5 million as the remaining stake in the Bank of
the Philippine Islands was divested.
Compared to a year ago, net profit was 83% lower as
income fell 10% and allowances rose to $62 million from
$11 million. Expenses were 6% higher than a year ago.
Net profit for Rest of the World fell 23% to $31 million
from the previous quarter. Total income declined 14% to
$60 million as net interest income fell 8% to $47 million
while non-interest income declined 32% to $13 million
from lower fee income and treasury customer income.
Expenses were unchanged at $21 million. Allowances
were at $5 million compared to a net write-back of $2
million in the previous quarter.
Compared to a year ago, total income fell 15% from lower
net interest income, fee income and trading income, while
expenses rose 17%. Total allowances fell to $5 million
from $67 million a year ago.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
256,744
252,181
227,029
General allowances
Net total
1,073
2,442
253,229
1,129
2,398
248,654
1,170
2,189
223,670
By business unit
Consumer Banking/ Wealth Management
Institutional Banking
Others
Total (Gross)
74,120
179,748
2,876
256,744
70,995
178,609
2,577
252,181
63,496
161,438
2,095
227,029
119,264
43,951
48,744
23,911
20,874
256,744
119,463
41,418
47,910
23,004
20,386
252,181
110,427
36,733
36,997
22,357
20,515
227,029
30,533
44,210
49,846
53,753
21,210
14,339
30,034
43,016
49,147
51,803
21,265
11,013
31,385
37,113
46,500
46,147
17,535
10,431
20,555
19,180
15,488
22,298
256,744
26,723
252,181
22,430
227,029
101,651
29,714
90,201
35,178
256,744
101,456
29,463
84,998
36,264
252,181
95,110
29,205
73,993
28,721
227,029
Gross
Less:
Specific allowances
1/
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
Total (Gross)
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (excluding housing
loans)
Others
Total (Gross)
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Note:
1/ Loans by geography are classified according to where the borrower is incorporated.
Gross customer loans rose 13% from a year ago to $257
billion. The growth during the past 12 months was broadbased and included Singapore corporate borrowing,
regional trade loans and secured consumer loans.
Gross customer loans grew 2% during the quarter, with
secured consumer loans and regional corporate borrowing
accounting for the increase. Singapore loans were little
changed during the quarter.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
31 Mar 2014
NPA
($m)
31 Dec 2013
NPL
(% of
loans)
SP
($m)
297
0.4
72
2,325
1.3
2,622
1.0
NPA
($m)
31 Mar 2013
NPL
(% of
loans)
SP
($m)
NPA
($m)
NPL
(% of
loans)
SP
($m)
293
0.4
73
300
0.5
71
1,001
2,589
1.4
1,056
2,370
1.5
1,178
1,073
2,882
1.1
1,129
2,670
1.2
1,249
By business unit
Consumer Banking/
Wealth Management
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
9
-
3
9
-
3
13
-
4
99
-
49
105
-
50
84
-
49
2,730
-
1,125
2,996
-
1,182
2,767
-
1,302
By geography
Singapore
423
0.4
113
435
0.4
109
405
0.4
127
Hong Kong
229
0.5
115
233
0.6
117
259
0.7
129
Rest of Greater China
281
0.6
143
282
0.6
146
236
0.6
120
South and South-east
Asia
Rest of the World
800
3.3
257
587
2.6
195
293
1.3
169
889
4.3
445
1,345
6.6
562
1,477
7.2
704
2,622
1.0
1,073
2,882
1.1
1,129
2,670
1.2
1,249
Total non-performing
loans
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Loss Allowance
Coverage
9
-
3
9
-
3
13
-
4
99
-
49
105
-
50
84
-
49
2,730
-
1,125
2,996
-
1,182
2,767
-
1,302
Specific allowances
1,125
1,182
1,302
General allowances
2,915
2,865
2,625
Total Allowances
4,040
4,047
3,927
Total Allowances/ NPA
148%
135%
142%
Total Allowances/
unsecured NPA
271%
204%
187%
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
579
384
111
328
633
266
250
103
8
123
332
159
488
226
112
397
1,145
265
240
42
9
142
465
146
395
84
120
386
1,201
291
247
39
12
201
524
157
Professionals & private individuals
(excluding housing loans)
158
47
155
48
159
46
Others
163
51
94
37
34
23
2,622
9
1,073
3
2,882
9
1,129
3
2,670
13
1,249
4
Contingent liabilities & others
99
49
105
50
84
49
Total non-performing assets
2,730
1,125
2,996
1,182
2,767
1,302
Total non-performing loans
Debt securities
By loan classification
($m)
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
By collateral type
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
SP
NPA
SP
NPA
SP
1,693
810
227
2,730
228
670
227
1,125
1,981
753
262
2,996
306
614
262
1,182
1,474
724
569
2,767
267
466
569
1,302
429
338
57
824
41
322
57
420
878
343
56
1,277
168
326
56
550
881
224
271
1,376
200
117
271
588
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
NPA
NPA
1,491
1,986
2,095
Secured non-performing assets by collateral type
Properties
394
351
297
Shares and debentures
482
323
84
Fixed deposits
Others
30
333
33
303
29
262
2,730
2,996
2,767
Unsecured non-performing assets
Total
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
NPA
NPA
Not overdue
180 days overdue
831
333
340
1,226
1,281
275
272
1,168
1,203
363
271
930
Total
2,730
2,996
2,767
Non-performing assets fell 9% from the previous quarter
to $2.73 billion as the resolution of a significant
exposure in Rest of the World was partially offset by an
increase in non-performing loans in South and South-
east Asia. The overall non-performing loan rate fell
slightly from the previous quarter to 1.0%. Allowance
coverage rose to 148% of non-performing assets and to
271% if collateral was considered.
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
Customer deposits rose 3% from the previous quarter and
15% from a year ago to $301 billion. US dollar deposits
accounted for three-quarters of the increase over the past
31 Mar 2014
31 Dec 2013
31 Mar 2013
139,560
19,052
98,784
21,666
58
27,609
17,371
5,944
3,940
354
83,376
47,461
4,915
25,674
5,326
50,945
41,925
3,107
5,416
497
301,490
125,809
112,750
56,696
6,235
134,758
17,079
97,022
20,616
41
29,840
18,964
6,437
3,993
446
75,023
43,172
5,858
18,616
7,377
52,744
43,285
3,112
5,584
763
292,365
122,500
112,429
48,809
8,627
134,295
17,636
94,485
20,759
1,415
28,405
17,787
6,483
3,953
182
52,682
29,551
5,053
14,685
3,393
47,263
38,805
3,006
4,436
1,016
262,645
103,779
109,027
43,833
6,006
12 months, while growth during the quarter was in US
dollar and Singapore dollar deposits.
DEBTS ISSUED
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
Subordinated term debts
Senior medium term notes
Commercial papers
Negotiable certificates of deposit
Other debt securities
Total
5,523
6,411
12,121
1,432
4,534
30,021
5,544
5,635
12,142
1,235
4,103
28,659
5,542
3,556
9,611
996
4,275
23,980
Due within 1 year
Due after 1 year
18,300
11,721
13,040
10,940
Total
30,021
17,108
11,551
28,659
23,980
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group’s market risk appetite framework leverages on the Tail Value-at-Risk (TVaR) metric to monitor and limit market
risk exposures. TVaR, or more commonly referenced as Expected Shortfall, is calculated using the historical simulation
value-at-risk (VaR) approach and averaging the losses beyond the 95% confidence interval, over a one-day holding period.
The following table shows for Treasury’s trading portfolios at period-end, average, high and low diversified TVaR.
($m)
As at 31 Mar 2014
Total
Average
13
1 Apr 2013 to 31 Mar 2014
High
10
Low
18
7
Treasury’s trading portfolio experienced six back-testing exceptions from 1 April 2013 to 31 March 2014 compared with
none in the corresponding prior period. The exceptions occurred in June, July and February.
The chart below shows the histogram of VaR for the Group’s trading book for the period from 1 April 2013 to 31 March
2014.
DBSH Group TVaR for Treasury Trading Book
120
100
No. of Days
80
60
40
>17
>15-17
>13-15
>11-13
>9-11
0
100
2,085
631
1,454
439
163
82
184
2
2
2
16
>100
(54)
36
Total income
2,649
2,317
14
2,322
14
557
484
151
506
446
223
10
9
(32)
527
503
151
6
(4)
-
Total expenses
1,192
1,175
1
1,181
1
Operating profit after allowances
Share of profits of associates and joint venture
Profit before tax
1,457
13
1,470
1,142
27
1,169
28
(52)
26
1,141
13
1,154
28
27
Income tax expense
Net profit
199
1,271
167
1,002
19
27
134
1,020
49
25
1,231
40
1,271
950
52
1,002
30
(23)
27
973
47
1,020
27
(15)
25
In $ millions
Expenses
Employee benefits
Other expenses
Allowances for credit and other losses
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
1st Qtr
2014
1st Qtr
2013
+/(-)
%
4th Qtr
2013
+/(-)
%
1,271
1,002
27
1,020
25
23
13
37
2
(38)
>100
20
-
15
NM
133
(23)
(2)
144
39
(52)
(8)
18
>100
56
75
>100
(99)
(67)
11
(135)
NM
66
NM
NM
1,415
1,020
39
885
60
1,375
40
1,415
966
54
1,020
42
(26)
39
837
48
885
64
(17)
60
1/
Other comprehensive income :
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates and joint venture
Available-for-sale financial assets and others
Net valuation taken to equity
Transferred to income statement
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
Notes:
1/ Items recorded in “Other Comprehensive Income” above will be reclassified subsequently to the income statement when specific conditions are met e.g. when foreign operations or
available-for-sale financial assets are disposed.
NM Not Meaningful
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2014
GROUP
31 Dec
20131/
31 Mar
2013
Cash and balances with central banks
Government securities and treasury bills
Due from banks
Derivatives
Bank and corporate securities
Loans and advances to customers
Other assets
Associates and joint venture
Subsidiaries
Properties and other fixed assets
Goodwill
23,510
30,477
44,340
15,186
33,307
253,229
11,605
1,100
1,423
4,802
18,726
27,497
39,817
17,426
33,546
248,654
8,925
1,166
1,449
4,802
17,422
37,883
32,590
14,943
28,377
223,670
10,880
1,271
1,421
4,802
TOTAL ASSETS
418,979
402,008
373,259
Due to banks
Deposits and balances from customers
Derivatives
Other liabilities
Other debt securities
Subordinated term debts
18,521
301,490
15,564
15,236
24,498
5,523
13,572
292,365
18,132
11,594
23,115
5,544
18,025
262,645
15,277
16,283
18,438
5,542
TOTAL LIABILITIES
380,832
364,322
38,147
Share capital
Other equity instruments
Other reserves
Revenue reserves
SHAREHOLDERS’ FUNDS
In $ millions
31 Mar
2014
COMPANY
31 Dec
20131/
31 Mar
2013
12,519
12,547
11,188
12,519
12,547
11,188
16
11
8
336,210
16
11
8
37,686
37,049
12,503
12,536
11,180
9,684
803
6,587
18,493
9,676
803
6,492
17,262
9,590
7,228
15,916
9,710
803
87
1,903
9,704
803
136
1,893
9,621
84
1,475
35,567
34,233
32,734
12,503
12,536
11,180
ASSETS
LIABILITIES
NET ASSETS
EQUITY
Non-controlling interests
TOTAL EQUITY
OTHER INFORMATION
Net book value per share ($)
(i) Basic
(ii) Diluted
2,580
3,453
4,315
38,147
37,686
37,049
12,503
12,536
11,180
14.14
14.04
13.61
13.51
13.35
13.25
4.72
4.73
4.73
4.74
4.51
4.53
Note:
1/ Audited
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Share
Capital
Balance at 1 January 2014
9,676
Purchase of Treasury shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of
share options
Other equity
instruments
Other
reserves
Revenue
reserves
803
6,492
17,262
performance shares
Total equity
34,233
3,453
37,686
(72)
(72)
(72)
12
12
12
(3)
-
-
19
19
19
(65)
-
-
3
Cost of share-based payments
Draw-down of reserves upon vesting of
Total
Noncontrolling
interests
65
Redemption of preference shares of a
subsidiary
Dividends paid to non-controlling interests
Total comprehensive income
-
(895)
(895)
-
(18)
(18)
144
1,231
1,375
40
1,415
Balance at 31 March 2014
9,684
803
6,587
18,493
35,567
2,580
38,147
Balance at 1 January 2013
9,542
-
7,229
14,966
31,737
4,261
35,998
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of
share options
Draw-down of reserves upon vesting of
performance shares
12
12
12
2
(2)
-
-
34
(34)
-
-
Cost of share-based payments
19
Total comprehensive income
16
950
966
7,228
15,916
32,734
Balance at 31 March 2013
9,590
-
19
19
54
1,020
4,315
37,049
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2014
Share capital
Other equity
instruments
Other
reserves
Revenue
reserves
Total equity
9,704
803
136
1,893
12,536
Purchase of Treasury shares
(72)
(72)
Transfer of Treasury shares
63
63
Draw-down of reserves upon vesting of performance shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of share options
(65)
(65)
12
12
3
-
(3)
19
Cost of share-based payments
Total comprehensive income
19
10
10
Balance at 31 March 2014
9,710
803
87
1,903
12,503
Balance at 1 January 2013
9,574
-
101
1,476
11,151
Transfer of Treasury shares
33
33
Draw-down of reserves upon vesting of performance shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of share options
(34)
12
2
Total comprehensive income
9,621
-
(2)
19
Cost of share-based payments
Balance at 31 March 2013
(34)
12
-
84
19
(1)
(1)
1,475
11,180
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
1st Qtr
2014
1st Qtr
2013
Cash flows from operating activities
Net profit
1,271
1,002
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates and joint venture
Net gain on disposal (net of write-off) of properties and other fixed assets
Net income from investment securities
Net gain on disposal of associate
Income tax expense
Profit before changes in operating assets & liabilities
151
53
(13)
(43)
(38)
(223)
199
1,357
223
55
(27)
(66)
167
1,354
Increase/(Decrease) in:
Due to banks
Deposits and balances from customers
Other liabilities
Other debt securities and borrowings
4,949
9,125
1,138
1,213
2,674
9,181
2,470
4,694
(Increase)/Decrease in:
Restricted balances with central banks
Government securities and treasury bills
Due from banks
Loans and advances to customers
Bank and corporate securities
Other assets
(11)
(2,933)
(4,522)
(4,719)
342
(547)
(305)
(1,440)
(3,185)
(13,358)
(2,888)
203
(108)
(76)
In $ millions
Tax paid
Net cash generated from/(used in) operating activities (1)
5,284
(676)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
Proceeds from disposal of interest in associate
(43)
56
426
1
(31)
2
-
Net cash generated from/(used in) investing activities (2)
439
(28)
Cash flows from financing activities
Increase in share capital
Purchase of treasury shares
Dividends paid to non-controlling interests
Redemption of preference shares of a subsidiary
12
(72)
(18)
(895)
14
-
Net cash (used in)/ge
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The Board of Directors of DBS Group Holdings Ltd (“DBSH”) reports the following:
Unaudited Financial Results for the First Quarter Ended 31 March 2014
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the first quarter of 2014, no dividend has been declared for DBSH non-voting redeemable
convertible preference shares and DBSH ordinary shares.
By order of the Board
Goh Peng Fong
Group Secretary
29 April 2014
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Quarter ended
31 March 2014
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Customer Deposits
Debts Issued
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Interested Person Transactions
Selected Notes to the Interim Financial Statements
Confirmation by the Board
Page
2
4
5
5
6
6
7
10
13
14
17
17
18
19
20
21
21
22
23
24
25
26
26
27
31
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), as modified by the requirements of Notice to Banks No. 612 “Credit Files,
Grading and Provisioning” issued by the Monetary Authority of Singapore. The accounting policies and methods of
computation applied for the current financial periods are consistent with those applied for the financial year ended 31
December 2013, with the exception of the adoption of new or revised FRS.
On 1 January 2014, the Group adopted the following new or revised FRS that are issued by the Accounting Standards Council
and relevant for the Group:
FRS 110 Consolidated Financial Statements
FRS 111 Joint Arrangements
FRS 112 Disclosure of Interests in Other Entities
Amendments to FRS 32 Offsetting Financial Assets and Financial Liabilities
There is no significant impact on the Group’s financial statements from the adoption of the above FRS or revised FRS.
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
1,488
510
453
2,451
1,041
1,410
151
1,327
507
483
2,317
952
1,365
223
12
1
(6)
6
9
3
(32)
1,454
439
258
2,151
1,030
1,121
151
2
16
76
14
1
26
-
Profit before tax
Net profit
1,272
1,033
1,169
950
9
9
983
802
29
29
223
-
-
NM
-
221
(50)
1
NM
(25)
1,231
950
NM
30
973
NM
27
Selected balance sheet items ($m)
Customer loans
Total assets
253,229
418,979
223,670
373,259
13
12
248,654
402,008
2
4
Customer deposits
Total liabilities
Shareholders’ funds
301,490
380,832
35,567
262,645
336,210
32,734
15
13
9
292,365
364,322
34,233
3
5
4
1.66
39.3
42.5
1.02
12.3
84.0
1.0
15
13.1
13.1
15.3
1.64
42.7
41.1
1.06
12.0
85.2
1.2
21
12.9
12.9
15.5
Selected income statement items ($m)
One-time item (Gain from sale of BPI)
One-time item (DBS Foundation)
One-time item (National Gallery Singapore)
Net profit including one-time items
Key financial ratios (%) (excluding one-time
1/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
2/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
Common Equity Tier 1 capital adequacy ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
1.61
32.4
47.9
0.79
9.7
85.0
1.1
13
13.7
13.7
16.3
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Per share data ($)
Per basic share
– earnings excluding one-time items
– earnings
3/
– net book value
Per diluted share
– earnings excluding one-time items
– earnings
3/
– net book value
1st Qtr
2014
1st Qtr
2013
4th Qtr
2013
1.69
1.78
14.14
1.58
1.58
13.35
1.30
1.37
13.61
1.68
1.76
14.04
1.56
1.56
13.25
1.28
1.35
13.51
Notes:
1/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis.
2/ Calculated based on net profit attributable to the shareholders net of dividends on preference shares and other equity instruments. Non-controlling interests, preference shares and
other equity instruments are not included as equity in the computation of return of equity.
3/ Non-controlling interests are not included as equity in the computation of net book value per share.
NM Not Meaningful
First-quarter net profit rose 9% from a year ago to a record
$1.03 billion, marking the first time that quarterly earnings
crossed $1 billion. Total income increased 6% to a new
high of $2.45 billion as higher net interest margin, loan
volumes and customer non-interest income more than
offset a decline in market income. Compared to the
previous quarter, net profit was 29% higher as total
income increased 14%.
Asset quality further strengthened as the nonperforming loan rate improved to 1.0% from 1.1% in the
previous quarter due to the resolution of a significant
exposure. Specific allowances for loans of 15 basis
points were similar to the previous quarter but lower
than a year ago. Allowance coverage rose to 148% and
to 271% if collateral was considered, both of which were
historical highs.
Net interest income rose 12% from a year ago and 2%
from the previous quarter to a new high of $1.49 billion.
Loans grew 13% from a year ago and 2% from the
previous quarter. Net interest margin increased five basis
points from the previous quarter to 1.66% as trade loan
pricing and other asset yields improved.
Liquidity was ample as deposits rose 15% from a year
ago and 3% from the previous quarter to $301 billion.
The loan-deposit ratio of 84% was similar to recent
quarters. Capital ratios continued to exceed regulatory
standards, with the Common Equity Tier 1 ratio at
13.1%.
Non-interest income fell 3% from a year ago to $963
million due to lower stockbroking commissions, investment
banking fees and trading gains. These declines were
partially offset by continued growth in customer-related
income. Fee income from trade and transactions services
and from wealth management, as well as treasury
customer income, reached new highs. Non-interest
income was 38% higher than the previous quarter as fee
and trading income increased.
Return on equity was 12.3% compared to 12.0% a year
ago.
If one-time items – comprising a gain of $223 million
from the divestment of a remaining stake in the Bank of
the Philippine Islands (“BPI”) less a $25 million donation
to the National Gallery Singapore – were included, net
profit would be $1.23 billion.
Expenses rose 9% from a year ago and 1% from the
previous quarter to $1.04 billion. Profit before
allowances rose 3% from a year ago and 26% from the
previous quarter to a new high of $1.41 billion.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2014
Average balance
sheet
Average
balance
($m)
1st Qtr 2013
Average
Interest
rate
($m)
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
4th Qtr 2013
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer non-trade
loans
1/
Trade assets
2/
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
202,238
1,244
2.49
177,447
1,129
2.58
195,362
1,229
2.50
62,669
36,358
63,451
364,716
404
144
337
2,129
2.61
1.61
2.15
2.37
54,074
32,116
64,929
328,566
338
110
343
1,920
2.54
1.39
2.14
2.37
62,941
37,605
63,061
358,969
403
119
334
2,085
2.54
1.26
2.10
2.30
291,197
48,666
339,863
517
124
641
0.72
1.03
0.76
261,862
42,644
304,506
466
127
593
0.72
1.21
0.79
285,155
51,133
336,288
507
124
631
0.71
0.96
0.75
1,488
1.66
1,327
1.64
1,454
1.61
Net interest
3/
income/margin
Notes:
1/ Trade assets were subsumed under “Customer loans” and “Interbank assets” for previous presentation. Prior period comparatives have been aligned to the current
presentation.
2/ Includes non-restricted balances with central banks.
3/ Net interest margin is net interest income expressed as a percentage of average interest-bearing assets.
Net interest income grew 2% from the previous quarter to
$1.49 billion. Net interest margin increased five basis points
to 1.66% as trade loan pricing as well as other asset yields
improved. The higher asset yields were partially offset by
higher funding costs.
Compared to a year ago, net interest income rose 12%. Net
interest margin was two basis points higher as funding
costs fell moderately. Asset volumes were also higher, led
by increases in customer loans and trade assets.
1st Qtr 2014 versus 1st Qtr 2013
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2014 versus 4th Qtr 2013
Volume
Rate
Net
change
Volume
Rate
Net
change
158
(43)
115
43
(1)
42
54
14
(8)
12
20
2
66
34
(6)
(2)
(4)
2
12
32
8
10
28
10
218
(9)
209
39
51
90
53
18
71
(2)
(21)
(23)
51
(3)
48
11
(6)
5
10
9
19
21
3
24
147
14
161
34
32
66
Interest income
Customer non-trade
loans
Trade assets
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on net interest income
Due to change in number of days
Net Interest Income
-
(32)
161
34
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Stockbroking
Investment banking
1/
Trade and transaction services
Loan-related
2/
Cards
Wealth management
Others
Fee and commission income
Less: Fee and commission expense
43
43
140
118
83
117
23
62
64
134
103
78
113
14
(31)
(33)
4
15
6
4
64
(7)
12
64
(12)
22
10
567
57
568
61
(7)
46
43
125
72
94
96
21
497
58
Net fee and commission income
510
507
1
439
16
14
(2)
Notes:
1/ Includes trade & remittances, guarantees and deposit-related fees.
2/ Net of interchange fees paid.
Compared to a year ago, net fee and commission income
was 1% higher as continued growth in annuity businesses
more than offset declines in market-related activities.
Stockbroking commissions fell in line with lower market
turnover while investment banking fell from a high base
arising from a significant transaction a year ago.
Net fee and commission income rose 16% from the
previous quarter to a new high of $510 million. The growth
was broad-based. Contributions from wealth management
and trade and transaction services rose to new highs, while
those from loan activities were also higher.
OTHER NON-INTEREST INCOME
($m)
Net trading income
Net income from investment securities
Net gain on fixed assets
1/
Others (includes rental income)
Total
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
362
408
(11)
163
>100
38
43
10
66
9
(42)
NM
11
82
13
(54)
NM
(23)
453
483
(6)
258
76
Notes:
1/ Excludes one-time items.
NM Not Meaningful
Net trading income of $362 million was underpinned by
treasury customer income, which rose to a record.
Trading gains were higher than the previous quarter but
lower than a year ago, when fixed-income market
conditions were more favourable.
Net income from investment securities of $38 million
was lower than both comparative periods, with the
decline offset by a net gain on fixed asset sales of $43
million.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
557
98
187
59
140
1,041
19,623
506
88
167
50
141
952
18,523
10
11
12
18
(1)
9
6
527
91
184
67
161
1,030
19,393
6
8
2
(12)
(13)
1
1
53
1
55
1
(4)
-
54
-
(2)
NM
2
2
-
2
-
Included in the above table were:
Depreciation of properties and other fixed assets
Directors’ fees
Audit fees payable
Expenses rose 1% from the previous quarter to $1.04
billion as higher staff and occupancy costs were offset by
a decline in other expenses.
Compared to a year ago, costs rose 9%, at a slightly
higher rate than income growth. The cost-income ratio
was 42% compared with 41% a year ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2014
1st Qtr
2013
% chg
4th Qtr
2013
% chg
56
110
(49)
60
(7)
93
15
10
3
97
(32)
114
7
8
2
33
64
(18)
>100
25
50
>100
NM
81
11
16
9
46
(1)
15
36
(38)
(67)
>100
(>100)
2
(1)
NM
10
(80)
151
223
(32)
151
-
General allowances (GP)
Specific allowances (SP) for loans
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
1/
Specific allowances (SP) for securities, properties and
other assets
Total
Notes:
1/
Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
Total allowances were unchanged from the previous
quarter at $151 million. An increase in specific
allowances for loans in South and South-east Asia was
offset by write-backs in Rest of the World and lower
non-loan specific allowances.
Compared to a year ago, total allowances were 32%
lower. Specific allowances for loans fell 18% to $93
million while general allowances were also lower in
line with loan growth.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer
Banking /
Wealth
Management
Selected income items
1/
1st Qtr 2014
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Institutional
Banking
Treasury
Total
Others
384
282
666
437
29
766
520
1,286
357
129
218
61
279
122
-
120
100
220
125
(7)
1,488
963
2,451
1,041
151
2
202
800
157
11
113
13
1,272
396
261
657
481
25
805
341
1,146
367
105
182
18
200
128
1
71
77
148
54
20
1,454
697
2,151
1,030
151
151
674
71
13
87
13
983
359
263
622
400
18
718
484
1,202
319
173
163
160
323
110
-
87
83
170
123
32
1,327
990
2,317
952
223
204
710
213
27
42
27
1,169
76,332
208,713
92,285
36,847
144,721
15
8
159,323
5
3
58,510
3
2
18,278
20
40
414,177
4,802
418,979
380,832
43
53
1/
4th Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
1st Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Selected balance sheet and other
2/
items
31 Mar 2014
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2014
Depreciation for 1st Qtr 2014
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer
Banking/
Wealth
Management
31 Dec 2013
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2013
Depreciation for 4th Qtr 2013
31 Mar 2013
Total assets before goodwill
Goodwill
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2013
Depreciation for 1st Qtr 2013
Institutional
Banking
Treasury
Total
Others
72,887
207,264
83,049
34,006
143,325
25
8
147,171
11
3
60,384
5
2
13,442
31
41
65,336
189,044
78,063
36,014
137,398
8
9
123,619
2
2
66,695
3
2
8,498
18
42
397,206
4,802
402,008
364,322
72
54
368,457
4,802
373,259
336,210
31
55
Notes:
1/ Non-interest income and profit before tax exclude one-time items.
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments.
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation.
The various business segments are described below:
Consumer Banking/ Wealth Management
Consumer Banking/ Wealth Management provides
individual customers with a diverse range of banking and
related financial services. The products and services
available to customers include current and savings
accounts, fixed deposits, loans and home finance, cards,
payments, investment and insurance products.
Total income increased by 1% from the previous quarter
to $666 million. Non-interest income was higher due to
increased contributions from investment and insurance
product sales, but it was offset by a decline in net interest
income due partially to a lower number of days compared
to the previous quarter. Expenses decreased 9% to $437
million from lower computerisation and other non-staff
costs, while allowances increased $4 million to $29
million, in line with loan growth. Profit before tax was 34%
higher at $202 million.
Compared to a year ago, profit before tax was marginally
lower by 1%. Total income increased 7% as net interest
income rose, and non-interest income was higher from
continued customer acquisition, better cross-selling and
higher cards fees. Expenses rose 9% from increased
investments in headcount, systems and branches, and
seasonal marketing campaigns. Total allowances were $11
milion higher as general and specific allowances increased.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including bank and nonbank financial institutions, government- linked companies,
large corporates and small and medium-sized businesses.
The business focuses on broadening and deepening
customer relationships. Products and services comprise
the full range of credit facilities from short term working
capital financing to specialized lending. It also provides
global transactional services such as cash management,
trade finance and securities and fiduciary services;
treasury and markets products; corporate finance and
advisory banking as well as capital markets solutions.
Profit before tax rose 19% from the previous quarter to
$800 million as higher total income and lower expenses
were partially offset by higher allowances.
Total income rose 12% to $1.29 billion. Non-interest
income increased 52% to $520 million, led by higher
treasury customer income due partly to seasonally higher
flows. Loan-related fees were also higher, helped by
increased syndication activity. Net interest income
declined 5% to $766 million partially due to a lower
number of days in the quarter. A significant loan
repayment moderated loan growth to 1% from the
previous quarter. These factors were partially offset by
higher trade loan margin due to better pricing.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Expenses fell 3% to $357 million. Allowances rose
23% to $129 million as both general and specific
allowances were higher.
Compared to a year ago, profit before tax was 13%
higher. Net interest income increased 7% from higher
loan volumes while non-interest income rose 7% from
higher treasury customer income and loan-related
fees.
Expenses were 12% higher in line with higher
business volumes. Total allowances fell 25% from
lower general and specific allowances.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions
and other market participants. It is primary involved in
sales, structuring, market marking and trading across
a broad range of financial products including foreign
exchange, interest rate, debt, credit, equity and other
structured derivatives. Income from these financial
products and services offered to the customer of other
business segments, such as Consumer
Banking/Wealth Management and Institutional
Banking, is reflected in the respective segments.
Treasury is also responsible for managing surplus
funds.
Total income rose 40% from the previous quarter to $279
million as trading gains in foreign exchange and interest
rate activities were higher. Expenses declined by 5% to
$122 million as business-related costs declined. Profit
before tax more than doubled to $157 million.
Compared to a year ago, profit before tax fell 26%. Total
income declined 14% to $279 million as trading gains from
interest rate products were lower. Expenses rose 11% to
$122 million.
Income from treasury customer flows is reflected in the
Institutional Banking and Consumer Banking/Wealth
Management customer segments and not in Treasury.
Income from treasury customer flows rose 54% to $355
million from the previous quarter as customer related
transactions increased in Hong Kong, Singapore, China,
Taiwan and Korea. Compared to a year ago, income from
treasury customer flows was 20% higher.
Others
Others encompasses a range of activities from corporate
decisions and includes income and expenses not attributed
to other business segments, including capital and balance
sheet management, funding and liquidity. DBS Vickers
Securities and Islamic Bank of Asia are also included in this
segment.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Selected income items
2/
1st Qtr 2014
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
931
540
1,471
629
69
260
246
506
178
4
154
123
277
140
11
96
41
137
73
62
47
13
60
21
5
1,488
963
2,451
1,041
151
5
778
117
621
2
326
54
272
1
127
30
97
5
7
(5)
12
34
3
31
13
1,272
199
1,033
908
414
1,322
604
76
272
164
436
184
(1)
132
62
194
152
24
91
38
129
69
54
51
19
70
21
(2)
1,454
697
2,151
1,030
151
2
644
91
506
253
37
216
1
19
1
18
10
16
(6)
22
51
11
40
13
983
134
802
835
614
1,449
579
98
231
243
474
168
41
101
69
170
118
6
109
44
153
69
11
51
20
71
18
67
1,327
990
2,317
952
223
4
776
83
641
265
43
222
1
47
10
37
22
95
26
69
(14)
5
(19)
27
1,169
167
950
274,075
4,802
278,877
1,976
168,817
66,531
66,531
411
50,595
42,006
42,006
99
20,188
18,436
18,436
35
9,761
13,129
13,129
2
7,383
414,177
4,802
418,979
2,523
256,744
2/
4th Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
1st Qtr 2013
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
and joint venture
Profit before tax
Income tax expense
Net profit
Selected balance sheet items
31 Mar 2014
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
And
Southeast Asia
Rest of
the World
Total
31 Dec 2013
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
258,580
4,802
263,382
2,124
164,117
65,783
65,783
355
51,116
43,132
43,132
103
19,866
16,466
16,466
31
9,581
13,245
13,245
2
7,501
397,206
4,802
402,008
2,615
252,181
31 Mar 2013
Total assets before goodwill
Goodwill
Total assets
3/
Non-current assets
Gross customer loans
239,379
4,802
244,181
2,208
147,084
59,863
59,863
354
44,322
38,660
38,660
108
19,050
17,523
17,523
20
9,158
13,032
13,032
2
7,415
368,457
4,802
373,259
2,692
227,029
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked.
2/ Non-interest income and profit exclude one-time items.
3/ Includes interests in associates and joint venture, properties and other fixed assets.
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit rose 23% from the previous quarter to $621
million. Total income rose 11% to $1.47 billion. Net
interest income increased 3% to $931 million as net
interest margin and loan volumes were higher. Noninterest income rose 30% to $540 million from higher fee
income and treasury customer income. Expenses were
4% higher at $629 million, while profit before allowances
rose 17% to $842 million. Allowances fell 9% to $69
million as general allowances were lower.
Compared to a year ago, profit before tax was little
changed as an increase in total income and lower general
and specific allowances were offset by higher expenses.
Net profit was 3% lower at $621 million.
Hong Kong
Currency effects were minimal compared to the previous
quarter and a year ago.
Net profit rose 26% from the previous quarter to $272
million as total income rose 16% to $506 million. Net
interest income was 4% lower at $260 million as lower loan
and deposit volumes were offset by higher net interest
margin. In constant currency terms, loans declined 1% as
trade finance loans were lower while deposits fell 4%. Net
interest margin rose five basis point to 1.57% due to better
loan pricing and higher yields on other assets. Non-interest
income was 50% higher at $246 million from record
treasury customer income as well as higher loan fees.
Expenses fell 3% to $178 million. Allowances remained low
at $4 million, compared to a net write-back of $1 million in
the previous quarter.
Compared to a year ago, net profit was 23% higher at $272
million as total income increased 7%. Net interest income
increased 13% as loans grew 12% on a constant exchange
basis and net interest margin rose four basis points. Noninterest income was little changed as higher income from
treasury customer flows and from trade and transaction
services were offset by lower trading gains. Expenses were
6% higher. Allowances declined to $4 million from $41
million due mainly to lower general allowances.
Other regions
Net profit for Rest of Greater China rose to $97 million from
$18 million in the previous quarter. Total income increased
43% to $277 million. Net interest income was 17% higher at
$154 million from better net interest margin and higher loan
volumes, while non-interest income doubled to $123 million
from higher fee income and treasury customer income.
Expenses fell 8% to $140 million. Total allowances were
halved to $11 million as general and specific allowances
were lower. Tax rose to $30 million from $1 million in the
previous quarter.
Compared to a year ago, net profit rose to $97 million from
$37 million. Higher net interest and non-interest income
were partially offset by higher expenses, while allowances
remained low at $11 million from $6 million a year ago.
Net profit for South and South-east Asia fell 45% from the
previous quarter to $12 million. Total income rose 6% to
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
$137 million, while expenses also increased 6% to $73
million. Total allowances increased 15% to $62 million as a
result of higher specific allowances. Associate contributions
halved to $5 million as the remaining stake in the Bank of
the Philippine Islands was divested.
Compared to a year ago, net profit was 83% lower as
income fell 10% and allowances rose to $62 million from
$11 million. Expenses were 6% higher than a year ago.
Net profit for Rest of the World fell 23% to $31 million
from the previous quarter. Total income declined 14% to
$60 million as net interest income fell 8% to $47 million
while non-interest income declined 32% to $13 million
from lower fee income and treasury customer income.
Expenses were unchanged at $21 million. Allowances
were at $5 million compared to a net write-back of $2
million in the previous quarter.
Compared to a year ago, total income fell 15% from lower
net interest income, fee income and trading income, while
expenses rose 17%. Total allowances fell to $5 million
from $67 million a year ago.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
256,744
252,181
227,029
General allowances
Net total
1,073
2,442
253,229
1,129
2,398
248,654
1,170
2,189
223,670
By business unit
Consumer Banking/ Wealth Management
Institutional Banking
Others
Total (Gross)
74,120
179,748
2,876
256,744
70,995
178,609
2,577
252,181
63,496
161,438
2,095
227,029
119,264
43,951
48,744
23,911
20,874
256,744
119,463
41,418
47,910
23,004
20,386
252,181
110,427
36,733
36,997
22,357
20,515
227,029
30,533
44,210
49,846
53,753
21,210
14,339
30,034
43,016
49,147
51,803
21,265
11,013
31,385
37,113
46,500
46,147
17,535
10,431
20,555
19,180
15,488
22,298
256,744
26,723
252,181
22,430
227,029
101,651
29,714
90,201
35,178
256,744
101,456
29,463
84,998
36,264
252,181
95,110
29,205
73,993
28,721
227,029
Gross
Less:
Specific allowances
1/
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
Total (Gross)
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (excluding housing
loans)
Others
Total (Gross)
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Note:
1/ Loans by geography are classified according to where the borrower is incorporated.
Gross customer loans rose 13% from a year ago to $257
billion. The growth during the past 12 months was broadbased and included Singapore corporate borrowing,
regional trade loans and secured consumer loans.
Gross customer loans grew 2% during the quarter, with
secured consumer loans and regional corporate borrowing
accounting for the increase. Singapore loans were little
changed during the quarter.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
31 Mar 2014
NPA
($m)
31 Dec 2013
NPL
(% of
loans)
SP
($m)
297
0.4
72
2,325
1.3
2,622
1.0
NPA
($m)
31 Mar 2013
NPL
(% of
loans)
SP
($m)
NPA
($m)
NPL
(% of
loans)
SP
($m)
293
0.4
73
300
0.5
71
1,001
2,589
1.4
1,056
2,370
1.5
1,178
1,073
2,882
1.1
1,129
2,670
1.2
1,249
By business unit
Consumer Banking/
Wealth Management
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
9
-
3
9
-
3
13
-
4
99
-
49
105
-
50
84
-
49
2,730
-
1,125
2,996
-
1,182
2,767
-
1,302
By geography
Singapore
423
0.4
113
435
0.4
109
405
0.4
127
Hong Kong
229
0.5
115
233
0.6
117
259
0.7
129
Rest of Greater China
281
0.6
143
282
0.6
146
236
0.6
120
South and South-east
Asia
Rest of the World
800
3.3
257
587
2.6
195
293
1.3
169
889
4.3
445
1,345
6.6
562
1,477
7.2
704
2,622
1.0
1,073
2,882
1.1
1,129
2,670
1.2
1,249
Total non-performing
loans
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Loss Allowance
Coverage
9
-
3
9
-
3
13
-
4
99
-
49
105
-
50
84
-
49
2,730
-
1,125
2,996
-
1,182
2,767
-
1,302
Specific allowances
1,125
1,182
1,302
General allowances
2,915
2,865
2,625
Total Allowances
4,040
4,047
3,927
Total Allowances/ NPA
148%
135%
142%
Total Allowances/
unsecured NPA
271%
204%
187%
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
579
384
111
328
633
266
250
103
8
123
332
159
488
226
112
397
1,145
265
240
42
9
142
465
146
395
84
120
386
1,201
291
247
39
12
201
524
157
Professionals & private individuals
(excluding housing loans)
158
47
155
48
159
46
Others
163
51
94
37
34
23
2,622
9
1,073
3
2,882
9
1,129
3
2,670
13
1,249
4
Contingent liabilities & others
99
49
105
50
84
49
Total non-performing assets
2,730
1,125
2,996
1,182
2,767
1,302
Total non-performing loans
Debt securities
By loan classification
($m)
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
By collateral type
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
SP
NPA
SP
NPA
SP
1,693
810
227
2,730
228
670
227
1,125
1,981
753
262
2,996
306
614
262
1,182
1,474
724
569
2,767
267
466
569
1,302
429
338
57
824
41
322
57
420
878
343
56
1,277
168
326
56
550
881
224
271
1,376
200
117
271
588
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
NPA
NPA
1,491
1,986
2,095
Secured non-performing assets by collateral type
Properties
394
351
297
Shares and debentures
482
323
84
Fixed deposits
Others
30
333
33
303
29
262
2,730
2,996
2,767
Unsecured non-performing assets
Total
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
NPA
NPA
NPA
Not overdue
180 days overdue
831
333
340
1,226
1,281
275
272
1,168
1,203
363
271
930
Total
2,730
2,996
2,767
Non-performing assets fell 9% from the previous quarter
to $2.73 billion as the resolution of a significant
exposure in Rest of the World was partially offset by an
increase in non-performing loans in South and South-
east Asia. The overall non-performing loan rate fell
slightly from the previous quarter to 1.0%. Allowance
coverage rose to 148% of non-performing assets and to
271% if collateral was considered.
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
Customer deposits rose 3% from the previous quarter and
15% from a year ago to $301 billion. US dollar deposits
accounted for three-quarters of the increase over the past
31 Mar 2014
31 Dec 2013
31 Mar 2013
139,560
19,052
98,784
21,666
58
27,609
17,371
5,944
3,940
354
83,376
47,461
4,915
25,674
5,326
50,945
41,925
3,107
5,416
497
301,490
125,809
112,750
56,696
6,235
134,758
17,079
97,022
20,616
41
29,840
18,964
6,437
3,993
446
75,023
43,172
5,858
18,616
7,377
52,744
43,285
3,112
5,584
763
292,365
122,500
112,429
48,809
8,627
134,295
17,636
94,485
20,759
1,415
28,405
17,787
6,483
3,953
182
52,682
29,551
5,053
14,685
3,393
47,263
38,805
3,006
4,436
1,016
262,645
103,779
109,027
43,833
6,006
12 months, while growth during the quarter was in US
dollar and Singapore dollar deposits.
DEBTS ISSUED
($m)
31 Mar 2014
31 Dec 2013
31 Mar 2013
Subordinated term debts
Senior medium term notes
Commercial papers
Negotiable certificates of deposit
Other debt securities
Total
5,523
6,411
12,121
1,432
4,534
30,021
5,544
5,635
12,142
1,235
4,103
28,659
5,542
3,556
9,611
996
4,275
23,980
Due within 1 year
Due after 1 year
18,300
11,721
13,040
10,940
Total
30,021
17,108
11,551
28,659
23,980
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group’s market risk appetite framework leverages on the Tail Value-at-Risk (TVaR) metric to monitor and limit market
risk exposures. TVaR, or more commonly referenced as Expected Shortfall, is calculated using the historical simulation
value-at-risk (VaR) approach and averaging the losses beyond the 95% confidence interval, over a one-day holding period.
The following table shows for Treasury’s trading portfolios at period-end, average, high and low diversified TVaR.
($m)
As at 31 Mar 2014
Total
Average
13
1 Apr 2013 to 31 Mar 2014
High
10
Low
18
7
Treasury’s trading portfolio experienced six back-testing exceptions from 1 April 2013 to 31 March 2014 compared with
none in the corresponding prior period. The exceptions occurred in June, July and February.
The chart below shows the histogram of VaR for the Group’s trading book for the period from 1 April 2013 to 31 March
2014.
DBSH Group TVaR for Treasury Trading Book
120
100
No. of Days
80
60
40
>17
>15-17
>13-15
>11-13
>9-11
0
100
2,085
631
1,454
439
163
82
184
2
2
2
16
>100
(54)
36
Total income
2,649
2,317
14
2,322
14
557
484
151
506
446
223
10
9
(32)
527
503
151
6
(4)
-
Total expenses
1,192
1,175
1
1,181
1
Operating profit after allowances
Share of profits of associates and joint venture
Profit before tax
1,457
13
1,470
1,142
27
1,169
28
(52)
26
1,141
13
1,154
28
27
Income tax expense
Net profit
199
1,271
167
1,002
19
27
134
1,020
49
25
1,231
40
1,271
950
52
1,002
30
(23)
27
973
47
1,020
27
(15)
25
In $ millions
Expenses
Employee benefits
Other expenses
Allowances for credit and other losses
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
1st Qtr
2014
1st Qtr
2013
+/(-)
%
4th Qtr
2013
+/(-)
%
1,271
1,002
27
1,020
25
23
13
37
2
(38)
>100
20
-
15
NM
133
(23)
(2)
144
39
(52)
(8)
18
>100
56
75
>100
(99)
(67)
11
(135)
NM
66
NM
NM
1,415
1,020
39
885
60
1,375
40
1,415
966
54
1,020
42
(26)
39
837
48
885
64
(17)
60
1/
Other comprehensive income :
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates and joint venture
Available-for-sale financial assets and others
Net valuation taken to equity
Transferred to income statement
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
Notes:
1/ Items recorded in “Other Comprehensive Income” above will be reclassified subsequently to the income statement when specific conditions are met e.g. when foreign operations or
available-for-sale financial assets are disposed.
NM Not Meaningful
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2014
GROUP
31 Dec
20131/
31 Mar
2013
Cash and balances with central banks
Government securities and treasury bills
Due from banks
Derivatives
Bank and corporate securities
Loans and advances to customers
Other assets
Associates and joint venture
Subsidiaries
Properties and other fixed assets
Goodwill
23,510
30,477
44,340
15,186
33,307
253,229
11,605
1,100
1,423
4,802
18,726
27,497
39,817
17,426
33,546
248,654
8,925
1,166
1,449
4,802
17,422
37,883
32,590
14,943
28,377
223,670
10,880
1,271
1,421
4,802
TOTAL ASSETS
418,979
402,008
373,259
Due to banks
Deposits and balances from customers
Derivatives
Other liabilities
Other debt securities
Subordinated term debts
18,521
301,490
15,564
15,236
24,498
5,523
13,572
292,365
18,132
11,594
23,115
5,544
18,025
262,645
15,277
16,283
18,438
5,542
TOTAL LIABILITIES
380,832
364,322
38,147
Share capital
Other equity instruments
Other reserves
Revenue reserves
SHAREHOLDERS’ FUNDS
In $ millions
31 Mar
2014
COMPANY
31 Dec
20131/
31 Mar
2013
12,519
12,547
11,188
12,519
12,547
11,188
16
11
8
336,210
16
11
8
37,686
37,049
12,503
12,536
11,180
9,684
803
6,587
18,493
9,676
803
6,492
17,262
9,590
7,228
15,916
9,710
803
87
1,903
9,704
803
136
1,893
9,621
84
1,475
35,567
34,233
32,734
12,503
12,536
11,180
ASSETS
LIABILITIES
NET ASSETS
EQUITY
Non-controlling interests
TOTAL EQUITY
OTHER INFORMATION
Net book value per share ($)
(i) Basic
(ii) Diluted
2,580
3,453
4,315
38,147
37,686
37,049
12,503
12,536
11,180
14.14
14.04
13.61
13.51
13.35
13.25
4.72
4.73
4.73
4.74
4.51
4.53
Note:
1/ Audited
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Share
Capital
Balance at 1 January 2014
9,676
Purchase of Treasury shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of
share options
Other equity
instruments
Other
reserves
Revenue
reserves
803
6,492
17,262
performance shares
Total equity
34,233
3,453
37,686
(72)
(72)
(72)
12
12
12
(3)
-
-
19
19
19
(65)
-
-
3
Cost of share-based payments
Draw-down of reserves upon vesting of
Total
Noncontrolling
interests
65
Redemption of preference shares of a
subsidiary
Dividends paid to non-controlling interests
Total comprehensive income
-
(895)
(895)
-
(18)
(18)
144
1,231
1,375
40
1,415
Balance at 31 March 2014
9,684
803
6,587
18,493
35,567
2,580
38,147
Balance at 1 January 2013
9,542
-
7,229
14,966
31,737
4,261
35,998
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of
share options
Draw-down of reserves upon vesting of
performance shares
12
12
12
2
(2)
-
-
34
(34)
-
-
Cost of share-based payments
19
Total comprehensive income
16
950
966
7,228
15,916
32,734
Balance at 31 March 2013
9,590
-
19
19
54
1,020
4,315
37,049
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2014
Share capital
Other equity
instruments
Other
reserves
Revenue
reserves
Total equity
9,704
803
136
1,893
12,536
Purchase of Treasury shares
(72)
(72)
Transfer of Treasury shares
63
63
Draw-down of reserves upon vesting of performance shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of share options
(65)
(65)
12
12
3
-
(3)
19
Cost of share-based payments
Total comprehensive income
19
10
10
Balance at 31 March 2014
9,710
803
87
1,903
12,503
Balance at 1 January 2013
9,574
-
101
1,476
11,151
Transfer of Treasury shares
33
33
Draw-down of reserves upon vesting of performance shares
Issue of shares upon exercise of share options
Reclassification of reserves upon exercise of share options
(34)
12
2
Total comprehensive income
9,621
-
(2)
19
Cost of share-based payments
Balance at 31 March 2013
(34)
12
-
84
19
(1)
(1)
1,475
11,180
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
1st Qtr
2014
1st Qtr
2013
Cash flows from operating activities
Net profit
1,271
1,002
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates and joint venture
Net gain on disposal (net of write-off) of properties and other fixed assets
Net income from investment securities
Net gain on disposal of associate
Income tax expense
Profit before changes in operating assets & liabilities
151
53
(13)
(43)
(38)
(223)
199
1,357
223
55
(27)
(66)
167
1,354
Increase/(Decrease) in:
Due to banks
Deposits and balances from customers
Other liabilities
Other debt securities and borrowings
4,949
9,125
1,138
1,213
2,674
9,181
2,470
4,694
(Increase)/Decrease in:
Restricted balances with central banks
Government securities and treasury bills
Due from banks
Loans and advances to customers
Bank and corporate securities
Other assets
(11)
(2,933)
(4,522)
(4,719)
342
(547)
(305)
(1,440)
(3,185)
(13,358)
(2,888)
203
(108)
(76)
In $ millions
Tax paid
Net cash generated from/(used in) operating activities (1)
5,284
(676)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
Proceeds from disposal of interest in associate
(43)
56
426
1
(31)
2
-
Net cash generated from/(used in) investing activities (2)
439
(28)
Cash flows from financing activities
Increase in share capital
Purchase of treasury shares
Dividends paid to non-controlling interests
Redemption of preference shares of a subsidiary
12
(72)
(18)
(895)
14
-
Net cash (used in)/ge